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Joined: May 2004
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My current rate is 9.75%. But, if I want to loan $$ for my piano upgrade (to a 7' grand) I am being quoted at 10.9%. My loans are done through the dealer's affiliated bank (which is Great Western Bank). Is that pretty standard? Also what is the standard length of loan?
Loaning $44k for 10 years would result in payments for me at roughly $600 monthly. Is this pretty much the going rate? Thanks!
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Think about a home equity loan if this option is available. Right now that's costing me 4.75%.
There is no end of learning. -Robert Schumann Rules for Young Musicians
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Holy moly! I just did a quick "loan calculator" calculation and the difference between a 10.9% rate and 4.75% rate came to $140 dollars monthly! Oh my ... I'm having second thoughts about financing such a sum of money since I can't qualify for a home equity loan (I don't own a home )
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So Mikester - you going for the rebuilt B????
If you don't talk to your children about equal temperment, who will?
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I'm still planning on making a trip to the East Coast piano dealers. But the high rates are a little bit worrisome. I might not get a piano after all.
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That's probably a decent rate for a "piano" loan through a dealer. But home equities are 5%-6%. I have a line of credit at 5.5%, and as Pal stated his is under 5%.
"If we lose freedom here, there's no place to escape to." MSU - the university of Michigan! Wheels
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Mikester : http://www.piano4u.com/piano_financing.htm Some dealerships will arrange financing through Allegro Acceptance, which is a company that finances musical instrument purchases. I'll let you know later on today what their rate is; it may be lower than what you were quoted. Regards,
BruceD - - - - - Estonia 190
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Mikester,
Many customers of mine are going fr a home equity loan. It is cheaper, can be longer term, and has tax advantages. As Bruce mentioned, Allegro is good, but they can't beat home equity rates.
My 2 cents,
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As Mikester noted, he doesn't own a home.
Creative credit card financing may be another option. Rates are fairly low on credit cards right now (especially for transaction-level promotional rates good for the life of the purchase) and credit card purchases are considered to be unsecured loans - no collateral needed! Mikester - I sent you a PM with info on this.
Hope you find a financial solution with which you are comfortable and that you have the opportunity to visit this area. There are many good dealers in the Mid-Atlantic/East Coast region.
Good luck . . . Linda
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Mikester :
OK, you can forget Allegro Acceptance. I just checked and was surprised to find that their APR was 13.99%. Surely you can do better than that.
The only reason I had any dealings with them is because they offer a 90-days-same-as-cash option which I was able to take advantage of.
Regards,
BruceD - - - - - Estonia 190
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Don't Panic!You will likely not take out a loan of $40k. You're going to subtract the downpayment, subtract whatever trade-in value you got for your current piano, and use the rest as your principal amount to calculate your payment. There are various very creative financing options out there that I have seen. A few examples: 1. Manufacturer financed 0% interest for one year. (You have to pay off everything in one year, or roll it over to some other debt facilities, such as those credit card balance transfer offers.) 2. Dealer financed 2% APR for first year, then 10% APR thereafter. (The trick is to pay off as much as you can in the first year, then roll over to something else.) 3. Straight financing -- that would be your 10% (+/- 2%) example. Still, after subtracting downpayment and current piano trade in, your actual loan amount shouldn't be that bad. With a bit of budgeting/spending discipline, paying the whole thing off in a few short years should be possible. Lastly, think very carefully if indeed you can only be satisfied by spending $40k + trade. Not making judgment one way or the other, but after sampling a boat load of different pianos, may be there is a more economical yet unquestionably sufficient alternative that would present itself to you. Good luck.
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Ax, which piano manufacturer offers 0% financing? And what dealership offers 2% fro the 1st year...?
Piano Industry Consultant
Co-author (with Larry Fine) of Practical Piano Valuation www.jasonsmc@msn.com
Contributing Editor & Consultant - Acoustic & Digital Piano Buyer
Retired owned of Jasons Music Center Maryland/DC/No. VA Family Owned and Operated Since 1937.
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Yowser, that sounds high to me. However the rate is probably competitive in your area.
Although I'm not a proponent of any kind of debt, you may want to consider just putting it on a credit card. I know one of my credit cards only has a rate of 4%. Although 44K on a credit card may not fly.
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Mike - Why not stay with the piano you have? In general, debt should not be used to purchase a depreciating asset.
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Originally posted by Jeffrey: Mike - Why not stay with the piano you have? In general, debt should not be used to purchase a depreciating asset. C'mon how many people do you expect to purchase an automobile with cash? Pianos too? I'd be reduced to driving and playing a bucket if I had to do this.
Haywood -------------
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Originally posted by hgiles: Originally posted by Jeffrey: [b] Mike - Why not stay with the piano you have? In general, debt should not be used to purchase a depreciating asset. C'mon how many people do you expect to purchase an automobile with cash? Pianos too?
I'd be reduced to driving and playing a bucket if I had to do this. [/b]actually - if you want a really good piano sometime in the future, the less you pay an institution in finance charges the more you will have available later to actually buy one, if you think in terms of total dollars. apple - who's first piano cost 50 dollars, her second - $300, her third $1750, her fourth - $5000 and her fifth - quite a bit more.
accompanist/organist.. a non-MTNA teacher to a few
love and peace, Õun (apple in Estonian)
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I am in Jeffrey and apple's court on this one. Save your lunch money and find a good cash deal. They are out there I assure you.
"The true character of a man can be determined by witnessing what he does when no one is watching".
anon
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Are you guys telling me that most people here touting their new Estonias, Steinways, Masons, etc. are buying them with cash?
I am a poor soul :-(
Haywood -------------
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I mean I would love to save up and pay for a $40k+ piano with cash, but unfortunately I don't think that's going to happen in the next couple of years. Especially now that I'm saving up to put money down on a home in the next year or two. Even then ... I mean, do people actually have $40k+ in liquid cash available? Well, I guess it's possible. If I save up for 7-9 years I figure I can probably have that sum of cash available, or immediately available by selling stock. I'm just a young gun! Ahhh, I think I'll just wait to be able to pay straight up for a nice piano.
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hgiles said: "C'mon how many people do you expect to purchase an automobile with cash? Pianos too?
I'd be reduced to driving and playing a bucket if I had to do this. " Actually there are a few of us out here that pay cash for everything including vehicles (if we charge it, we pay it in full at the end of the month) We owe for our house but that is a short loan. We really don't earn a whole lot either yet we have all the "toys" (even a lot in a lake/recreational community that we paid very little for as a foreclosure). Of course the downside to refusing to "rent" a lifesyle (ie. live making payments on everything) is that we have to wait for things & what we have is rarely top of the line or even bought new for that matter! Just about anyone can buy lots of things, but few seem to ever actually own them. Just my own personal observations/philosophy. As in everything else, your own personal financial milage may vary. I also understand piano is a very personal purchase & sometimes one "needs" the best! Now back to your regularly scheduled program!
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Piano
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Piano
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